The cost and complexity of complying with the SEC is already causing consternation among investment firms. There is also the potentially bigger issue of the safety of their data, specifically, that a Commission data breach could expose proprietary algorithms and trading strategies.

A key question: Is the data of covered entities safe? What assurances do they have that their information won't be compromised? Also, most funds are accustomed to keeping their data private; but under the SEC rule, every quarter, company filings will be made public. What hazards or concerns does this raise?